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Episode 124 — False Claims Act 2019 Review

Episode 124 — False Claims Act 2019 Review

The Justice Department continues to aggressively pursue False Claims Act cases.  In 2019, DOJ recovered over $3 billion from healthcare, defense and financial companies.  The heath care sector — pharmaceutical, medical device, hospitals and healthcare providers — continues to be the primary focus of False Claims Act cases.  Qui tam relators initiate a significant percentage of all False Claims Act cases. In this episode, Michael Volkov...

Get Compliance Straight – The Need to Automate

Get Compliance Straight – The Need to Automate

I am reluctant to start off the New Year with a negative comment or posting.  But I have a significant concern about the path and current state of ethics and compliance.  From my vantage point, I have always been inspired by the forward momentum of the compliance profession.  We have witnessed the unprecedented growth of the compliance profession – over the last twenty years, the...

OFAC Loses Exxon Sanctions Enforcement Case

OFAC Loses Exxon Sanctions Enforcement Case

In an interesting end of year decision, issued on December 31, 2019, a District Court in Dallas issued a rejected OFAC’s enforcement action against Exxon Corporation imposing a $2 million penalty for violation of the Russia Sanctions Program.  (Copy of decision is here).  OFAC suffered a rare rebuke after extensive litigation and it will be interesting to see if OFAC appeals the District Court’s decision....

OFAC Sanctions Compliance: 2019 a Game-Changing Year (Part II of II)

OFAC Sanctions Compliance: 2019 a Game-Changing Year (Part II of II)

I usually ignore hyperbole.  I cringe when I hear, “[Title] was the greatest movie of all time,” or “[Title] was the greatest book of all time” (true confession — except if someone fills in the blank with The Brothers Karamazov by Fyodor Dostoevsky). Moving on, 2019 was a big year in OFAC compliance.  The Sanctions Compliance Guidance (here) was a major change in sanctions compliance. ...

2019 OFAC Sanctions Enforcement Review (Part I of II)

2019 OFAC Sanctions Enforcement Review (Part I of II)

While DOJ had its biggest year in FCPA enforcement, OFAC quietly had a record year in enforcement.  OFAC collected approximately $1.28 billion (yes, with a B) in 26 separate enforcement actions.  That is quite an increase over 2018 when OFAC collected $71 million in 7 separate enforcement actions.  OFAC enforcement is maturing, and its relationship with DOJ is coordinated in much the same way that...

Episode 123 — 2019 OFAC Enforcement and Compliance Review

Episode 123 — 2019 OFAC Enforcement and Compliance Review

2019 was a big year for OFAC enforcement and compliance — OFAC collected $1.28 billion in fines and penalties in a total of 26 separate enforcement actions.  OFAC also issued important compliance program guidance, mandating a number of important requirements for compliance programs. OFAC’s enforcement record for 2019 focused on supply chain sourcing; acquisition of foreign companies engaged in transactions with prohibited countries and customers;...

The Future of Compliance – The New Proactive CCO (Part III of III)

The Future of Compliance – The New Proactive CCO (Part III of III)

The path of the compliance profession has been remarkable.  Recently, I have seen a number of tweets and postings from compliance thought leaders touting the accomplishments of compliance and the transformation of the profession (e.g. Donna Boehme and Roy Snell).  In particular, compliance thought leaders cite the increase of CCOs who report directly to the CEO and no longer report to the chief legal officer. ...

The Future of Compliance: Building Bridges (Part II of III)

The Future of Compliance: Building Bridges (Part II of III)

As a passionate supporter of the compliance function, I continue to advocate for compliance officers and the importance of compliance to overall governance.  Good compliance means good business – we all know that. Compliance always depends on interpersonal skills.  A CCO is only as good as his/her ability to persuade and enlist commitments from senior management and related functions.  Often I hear about problems CCOs...

The Future of Compliance: Re-Branding Compliance from Reactive to Proactive (Part I of III)

The Future of Compliance: Re-Branding Compliance from Reactive to Proactive (Part I of III)

As everyone knows, I am an eternal optimist.  Being a cynic always leads to negative energy and results.  As a former federal prosecutor, I am deeply committed to the idea of doing the right thing.  There is no meaningful alternative and I am mystified by individuals who can avoid or convince themselves that engaging in wrongdoing is somehow acceptable. With that background and foundation in...

Ethics and Compliance Trends and Predictions for 2020

Ethics and Compliance Trends and Predictions for 2020

2019 was a big year for ethics and compliance.  In fact, it is easy to argue that since the adoption of the compliance provisions in the US Sentencing Guidelines in 1991, compliance had its biggest year. The federal government issued three important documents in 2019 – DOJ issued the Evaluation of Corporate Compliance Programs from the Criminal Division (here) and from the Antitrust Division (here),...